Financial arrangements are a fundamental component of disaster risk reduction and management because disasters often result in extensive human, economic, environmental, and infrastructural losses. Adequate financial resources ensure that governments, organizations, and communities can effectively prepare for, respond to, recover from, and mitigate the impacts of disasters. Without proper financial planning, disaster management efforts become slow, inefficient, and incapable of meeting the urgent needs of affected populations. One of the primary needs for financial arrangements is to support disaster preparedness. Preparedness activities such as risk assessment, hazard mapping, public awareness campaigns, training of emergency personnel, mock drills, installation of early warning systems, and stockpiling of emergency supplies require continuous investment. Financial support enables authorities to build the capacity of institutions and communities to respond effectively when disasters occur. Financial arrangements are equally important for disaster mitigation. Mitigation involves reducing disaster risks through structural and non-structural measures such as constructing earthquake-resistant buildings, strengthening embankments, improving drainage systems, afforestation, flood control projects, and enforcing building regulations. These preventive measures require substantial funding but significantly reduce future disaster losses and save lives and property. Effective financial planning ensures a rapid and coordinated emergency response. During disasters, immediate financial resources are needed for search and rescue operations, evacuation, emergency medical services, temporary shelters, food distribution, clean drinking water, sanitation, and restoration of essential services. Delays in funding can increase casualties, worsen suffering, and prolong the recovery process. Therefore,